North Carolina Down Payment Support Systems

Online Payments - The North Carolina Housing Finance Agency got two excellent plans for first-time Home Buyers. These systems would be the deposit Assistance Program and also the Mortgage Credit Certificate.

You also purchase a home and December 1, 2009 and if you qualify for one of those plans, you may also qualify for the $8,000 tax credit only enacted into law.

First, who's a first-time Home Buyer? A first-time Home Buyer is someone who hasn't owned a house within the past three years. That is the same qualifying definition.

What is a Mortgage Credit Certificate and Who Qualifies?

A Mortgage Credit Certificate (MCC) is a national tax credit to assist home buyers with average and low incomes. All home owners can claim an itemized deduction for mortgage interest. The MCC takes this a step farther. An MCC “reduces your tax liability according to a portion of the mortgage interest that you pay.

You can claim 20% of the interest you pay as a credit in your federal income taxes if you are eligible for the MCC. You can save around $2,000 on your taxes.

Should you qualify for 2009, for the MCC, you will manage to combine this with the $8,000 tax credit. This may reduce a purchaser's tax liability by $10,000.

Who qualifies for an MCC is based on your income along with the cost of the property you're buying. Household income means the “gross income of the mortgagor and every other man anticipated to live in the dwelling who's 18 years old or older.”

The income and house price limits that apply in Durham Orange and Chatham Counties are listed below.

MCC Income Limits 1 Man $61,500 2 Men $61,500 3 Individuals $70,500 4 Men $70,500

MCC Sales Price Limitations New Dwelling $220,000 Existing Residence $210,000

Who Qualifies for Down Payment Help?

Home buyers that need help with their deposit and closing prices may be able to get down payment assistance - or, put simply, interest-free, deferred second mortgages up to $8,000. The customer only has to pay $1,000 of their own funds and the load would pay as much as .

This plan has more stringent income limitations than the MCC program outlined above. Like the MCC application, it can be used in conjunction with the new $8,000 tax credit on home purchases between December 1, 2009 and January 1, 2009. The down payment assistance, nevertheless, can't be used along with the MCC. This is an either or scenario.

The income and house price limitations that apply in Orange, Durham and Chatham Counties are listed below.

Down Payment Assistance Income Limitations

1 Individual $39,950 2 Men $45,650 3 Persons $51,350 4 Individuals $57,050

Down Payment Assistance Sales Cost Limits New Dwelling $210,000 Existing Residence $210,000